€100m Berlin centre bought by Cork group

CMC Capital, the Cork-based commercial property investment specialist, has announced the purchase of a major Berlin shopping centre for over €100m, according to The Evening Echo.

The group’s latest multi-million euro buy is the Schloss Strassen Centre (SSC), located on a prime shopping street in Berlin.

The shopping centre was bought by CMC Capital, which has offices in the city and Clonakilty, on behalf of a German commercial property syndicate.

“The closure of this transaction is the culmination of months of negotiations with the vendors in Germany but it has been well worth the wait to secure such a prestigious property in Berlin’s prime shopping area,” said Derry Crowley, CMC Capital director.

“Property on this street rarely comes onto the market. We are fortunate that, because of the quality of the local contacts and partners we have cultivated since entering the German market in 2004, we were able to enter direct negotiations with the vendor,” he added.

The group agreed the purchase price in September 2006 when the property was still in construction.

Mr Crowley said: “Since then there has been solid appreciation in the market so we believe we have secured great value for our clients.”

SSC, which opened for business in April 2007, has three floors of retailing and, at over 16,000 square metres, the centre has a mix of international, national and local tenants. Among them are Zara and Vodafone.

Rewe, a major German supermarket chain, is one of the anchor tenants.

Most of the tenants are on 10-year leases that provide for inflation-linked rental increases while many also provide for additional rental income based on retail turnover achieved.

SSC is located adjacent to an underground railway station from where there is a direct pedestrian link into the centre. There are 365 parking spaces in the centre, located on the fourth and roof levels of the building.

“Our focus in completing this deal has been to secure a top-quality investment property at a price and in a manner that delivers value for our investors,” added Mr Crowley.

Associated with Crowley & McCarthy Chartered Accountants, CMC Capital has over €500m under management on behalf of its property syndicate investors.